Daily Markets Broadcast 2019-05-13

Daily Markets Broadcast

2019-05-13

Wall Street retreats as additional tariffs imposed

Wall Street looks set to give back Friday’s surprising gains today, with early trading pushing US indices into the red. Trump hiked tariff rates to 25% on $200 billion worth of Chinese goods, considers hikes on another $325 billion. China has yet to respond with the retaliatory measures it has promised.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has already given back Friday’s gains in early trading, as the uncertainty surrounding US-China trade negotiations impacts
  • The index is still above the 23.6% Fibonacci retracement of the December-May rally at 25,486, with the 200-day moving average at 25,403 below
  • Despite the latest tariff increase, China has invited US trade representative Lighthizer and Trade Secretary Mnuchin to China to continue trade talks. There are no data releases scheduled for today.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index also looks poised to give back Friday’s gains, trading in the red so far today
  • The index is still holding above the 23.6% Fibonacci retracement of the rally since December at 11,938
  • Germany’s trade surplus jumped to EUR20 billion in March, the highest in 10 months, beating economists’ estimates of a decline to EUR18.2 billion. There are no German or Euro-zone data releases scheduled for today.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index snapped a four-day losing streak on Friday, despite Trump’s imposition of additional tariffs on Chinese goods. Looking at the moves in other indices, those gains could well be eroded at the open today
  • The index rebounded from a two-month low, with the convergence area of the 100-day moving average at 12,224 and the 50% retracement level of the 2019 rally at 12,198 remaining unbreached.
  • China is due to publish Foreign Direct Investment data for April today. Investment flows grew 6.5% y/y year-to-date in March.

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.
Andrew Robinson

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